South Dakota Airbnb and Short-Term Rental Regulations (2026 Guide)

South Dakota's Mount Rushmore, Badlands National Park, and the Sturgis Motorcycle Rally create unique STR demand — including some of the most concentrated short-stay activity in the country during peak events. Whether you already own a vacation rental in South Dakota or are evaluating your first investment, understanding the regulatory landscape is essential. STR laws in South Dakota vary significantly by city and county — and getting compliance wrong can mean fines, forced delistings, or lost income.

This guide covers South Dakota's approach to short-term rental regulation at the state level, then breaks down the rules in key markets investors and hosts need to know. Regulations as of 2026 — always verify current rules directly with your local municipality before listing.

If you'd like help navigating STR compliance in South Dakota, Awning's property management team operates in Rapid City, Deadwood, and the Badlands and helps hosts stay compliant while maximizing revenue.

How South Dakota Defines a Short-Term Rental

For regulatory and tax purposes, a short-term rental in South Dakota is generally defined as a residential property rented for 28 consecutive days or fewer. Any rental longer than this threshold is typically treated as a long-term rental and subject to different rules.

Does South Dakota Require a Statewide STR License?

South Dakota does not require a statewide STR license. Local municipalities and counties govern STR regulation with minimal state-level intervention.

South Dakota Short-Term Rental Taxes

South Dakota imposes a 4.5% state sales tax and a 1.5% municipal gross receipts tax on STR income. Rapid City and Deadwood add local tourism taxes. Airbnb collects and remits South Dakota state taxes automatically.

Regardless of which booking platform you use, it is your responsibility as a host to ensure all applicable taxes are collected and remitted correctly. Failure to comply can result in penalties, back taxes, and potential loss of your ability to operate.

STR Regulations by City in South Dakota

Below are the key STR markets in South Dakota and their current regulatory requirements. City regulations change frequently — check with your local planning or licensing department for the most current rules before investing.

Rapid City

Rapid City requires STR operators to obtain a city business license and comply with local zoning. Properties near Mount Rushmore and Crazy Horse Memorial see exceptionally high demand in summer, driving strong nightly rates in a market with relatively light regulation.

Deadwood

Deadwood, a designated National Historic Landmark, requires an STR permit through the city. The gaming and history tourism draw creates year-round STR demand unusual for a small South Dakota town.

Sturgis area

The Sturgis and Meade County area sees extraordinary peak demand during the annual Motorcycle Rally in August. County registration and state tax compliance are the primary requirements, with no permit caps that would restrict investor access.

Key Questions to Ask Before Listing an STR in South Dakota

• Does your city or county require an STR permit or license?
• Are there caps on the number of STR permits in your neighborhood or zone?
• Is your property owner-occupied or non-owner-occupied — and does that distinction affect your eligibility?
• What occupancy, noise, and parking rules apply to your specific property?
• Which taxes are you responsible for collecting and remitting vs. what the platform handles?
• Does your HOA or condo association allow short-term rentals?

The Bottom Line

South Dakota's STR regulatory environment ranges from investor-friendly rural counties to tightly regulated resort towns and urban cores. Understanding the specific rules in your target market — not just at the state level — is what determines whether your rental operates smoothly or faces costly disruptions.

Staying on top of changing regulations is one of the most valuable things a professional property manager brings to your operation. Awning manages short-term rentals in Rapid City, Deadwood, and the Badlands and monitors local regulatory changes so you don't have to. Reach out to learn how we can help you operate compliantly and profitably in South Dakota.